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Crypto News: Is Dogecoin’s Shiba Really Worth $ 110 Million? The bizarre idea of ​​an NFT with a dog

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$ 110 Million DOGEThrough a fractionation strategy,  the Feisty Doge, which is the NFT containing the photo of Dogecoin’s Shiba Inu (DOGE) , became the most expensive NFT in the cryptosphere with a valuation exceeding $ 100 million. How did we get there?

The miracle of fractionation: $ 110 million

An August 23 article from Forbes explains why the Feisty Doge, owned by CryptoPathic aka Path, very occasionally became one of the most expensive NFTs in the cryptosphere , with an estimated value of $ 110 million . The full NFT (and not yet split) had sold at auction for $ 43,279 in June 2021

In fact, Path artificially increased the value of the NFT by depositing it in Fractional.art . This transaction splits the NFT and issues tokens representing its partial ownership, just like shares for a company. This concept has been used over the past decades in other forms in the traditional art world, through trusts.

To carry out the split, a holder of a significant value NFT can deposit it in a smart contract and issue NFDs which are ERC-20 tokens called NFDs comparable to shares. Fractionation democratizes access to the most expensive NFTs, because even small wallets can buy a share of the NFT, acquiring a few NFDs from its fractionation.

 

Soon a new record for the NFT of Dogecoin

The value of Feisty Doge thus briefly reached 110 million dollars based on the total supply of NFD estimated at 100 billion and the price of the token (very fluctuating). The current total NFT trade price is around  $ 60 million , approaching Beeple’s NFT record of $ 69 million .

The crazy speculators who played the game used decentralized exchanges, like Uniswap or SushiSwap, to buy and sell Feisty Doge’s NFDs against ethers (ETH), bitcoin (BTC), wrapped bitcoin (WBTC) as well as other cryptocurrencies.

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Fractionation would therefore be a means of democratizing the most original and expensive NFTs. While this example for the lulz will bring a smile, the issue of fractional NFTs may well ignite the cryptosphere in the future. Who will be the next to follow his path? Maybe the owner of that old NFT pebble bought for $ 600,000  ?

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Crypto News: China (again) bans Bitcoin … amid general indifference

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Worst of the Middle Empire – In recent months, the Chinese government has stepped up its crackdown on the crypto industry in an effort to eliminate the industry’s presence in the country. These restrictions have had a negative impact on the cryptocurrency industry, with Bitcoin (BTC ) losing more than half of its value in a matter of weeks. Following the national repression, the Bitcoin blockchain has experienced, for the first time in its history, four consecutive readjustments in mining difficulty. But the Chinese authorities do not intend to stop there.

After the ban on minors, consumer protection

During a press briefing of 27 August , the Deputy Director of Investor Rights Protection Bureau of the People’s Bank of China (PBoC), Yin Youping , said digital assets were nothing other than simple speculative assets. In his remarks, Youping urged investors to protect their capital by staying away from the digital asset market.

“We remind the general public once again that digital currencies such as bitcoin are not legal tender nor have real value. “

Yin Youping from the Investor Rights Protection Bureau of the PBoC

According to Youping, investing in digital assets is just a fad that will soon fall into disuse. The Chinese people should therefore their knowledge of the risks and stay away from cryptocurrency investments.

For once, this umpteenth rant hostile to digital assets has had absolutely no impact on the market for these, which seems to want to start rising again for a few weeks. Indeed, news of Youping’s speech fell on the morning of August 27 , but had no visible influence in the market . Worse, Bitcoin offered us two beautiful bullish candles within 24 hours .

Tweet from Hellmouth Banner signifying indifference with which the market welcomed this new announcement from the People's Bank of China.

We are therefore a long way from the panic phases generated by China’s announcements during the month of May.

Bitcoin price in one hour time unit showing market lack of reaction to China's announcement
Bitcoin price in unit of time one hour (1H) – Source: TradingView

 

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Bitcoin and cryptocurrency trading still active in China despite bans

Youping added that the PBoC was taking drastic measures to end cryptocurrency trading operations in China . The central bank is expected to soon introduce a system that will standardize the crackdown on cryptocurrency transactions, encouraging the general public to promptly report any such activity.

At the same time, the PBoC intends to step up its policy of censoring websites, applications and companies that still allow Chinese citizens to trade in digital assets. Finally, the Chinese central bank also wants to fight against illegal fundraising favored by cryptocurrencies and blockchains.

If China is still cracking down on digital asset trading, it’s because Chinese traders resumed activity in 2021 , despite repeated bans. Indeed, many media, including Reuters and the South China Morning Post , have seen an increase in activity from Chinese traders.

Although exchanges like OKEx and Huobi have fled China and Binance and MXC prohibit the use of the yuan on their platforms, Chinese traders are still finding ways to access the precious satoshis, much to the displeasure of the authorities. Indeed, the advent of stablecoins like the USDT allows traders to do without their reference currency to carry out crypto transactions.

Finally, since 2017, the over-the-counter market has developed strongly in China. Regardless of the field, each new ban creates “shadow trades”. In China, there are, at least until last May, intermediaries responsible for marketing Chinese miners’ bitcoins to individuals. This peer-to-peer market is extremely difficult to pin down, which is why digital asset trading is still present in China.

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Crypto News: Bonfire for Ethereum: more than 100,000 ETH gone up in smoke from London

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Bonfire on Ethereum (ETH)The network recorded its 100,000th ETH burnt, just under 3 weeks after the London hard fork . However, the latter has not solved the main problem facing network users. And even if an increasing number of ETH transactions use this mechanism of destroying part of the gas costs, the proportion of these transactions does not yet exceed 50%.

Deflation on Ethereum: a London stake at 100,000 ETH

According to The Block , 100,000 Ethers worth $ 300 million were burned on Ethereum , in just 20 days after the London update . This massive burn considerably reduced the level of Aether’s inflation. The Aether supply increased before this mechanism, by about 5% per year . This number would now decrease by 35% thanks to destroyed ethers .

The EIP-1559 , included in the hard fork London that took place on August 5, 2021 , allows users to better estimate the true cost of each transaction . The costs are in fact subdivided on the one hand into basic costs, which go directly to the network and are immediately destroyed, and on the other hand into rewards for minors who process and validate the transactions.

 

London: between unintended consequences and gradual deployment

London had a positive impact on Ethereum’s capacity which increased by around 9% , according to Vitalik Buterin. However, it did not help reduce gas costs . These have even quintupled, going from around 4 USD at the end of July 2021 to 20 USD around the middle of August 2021. The fever of NFTs, with the explosion of the prices of certain “works” like the jpeg of a old stone , would partly explain this increase in transaction costs.

London is already having visible consequences on Ethereum, but the implementation of EIP-1559 does not yet apply consistently to all transactions. CoinMetrics’ newsletter of August 24, 2021 reported an increase in the percentage of ETH transactions using the EIP-1559 . This rate rose from around 23% on August 18, 2021, when MetaMask announced it was starting to implement EIP for its users, to over 40% on August 22, 2021.

The effects of London on network capacity and on the Ether supply were not long in coming. This former Goldman Sachs executive believes that Ether has a better trading configuration than Bitcoin thanks, among other things, to this burn mechanism which would increase the scarcity of Ether and make it deflationary.

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Crypto News: Bitcoin Price August 30, 2021 – Beware of the September Curse

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When the pause is neededThe resumption of the bullish rally in Bitcoin (BTC) was halted by major resistances in the $ 50,000 – $ 51,000 zone. A little more than 24 hours from the July 2021 close, traders and analysts are providing some answers as to the likelihood of a new all-time high by the end of 2021, with a forecast agenda based on historical data.

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Bullish bitcoin: resistance and accumulation

Bitcoin starts today, August 30, 2021, above $ 49,000 . It then begins a long drop to form a low at $ 47,489 on Bitfinex. The rebound took Bitcoin back above $ 48,000. Bitcoin is trading at $ 48,431 at the time of writing , and is currently recording a daily loss of 0.73%.

As Bitcoin continues to move back and forth between the $ 47,000- $ 50,000, some analysts are making a cautious discourse on the current trend . Trader Michaël van de Poppe thus indicated in his tweet yesterday, August 29, 2021, that it would be bullish on Bitcoin only when the latter exceeds $ 51,000 .

Trader Michaël van de Poppe will only be bullish on Bitcoin when its price exceeds $ 51,000.
Publication by Michaël van de Poppe – Source: Twitter

While this caution is warranted in the very short term given the fluctuations in the price of Bitcoin in recent days, Ecoinometrics data gives an optimistic outlook on the trend over a longer period . Ecoinometrics has indeed revealed a positive change during the month of August 2021, in the balances of the wallets of whales holding 1,000 BTC to 10,000 BTC. Large wallets thus accumulate Bitcoins betting on higher levels compared to current Bitcoin prices.

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Small wallets holding less than 1 BTC do the same . According to Ecoinometrics, they have been accumulating Bitcoins since June 2021. They even absorbed selling pressure from whales for a while .

BTC whales and small wallets have been accumulating Bitcoins lately. Soon a hike above $ 50,000?
Publication of Ecoinometrics – Source: Twitter

The data shared by Glassnode today corroborates this accumulation of Bitcoins. The number of addresses holding 0.1 BTC or more hit a 3-month high of 3,231,069 BTC today.

Glassnode data confirms this accumulation of Bitcoin, and therefore a strengthening of Bitcoin's fundamentals.
Glassnode publication – Source: Twitter

September, do we have to go down or except for the bull run?

Unless there is a crash in the next 24 hours, Bitcoin should comfortably end August 2021 in the green . This month has seen Bitcoin win back $ 50,000, but also drops below $ 47,000 which cast doubt on the continuation of the bullish rally. Will September finally mark the resumption of the bull run with Bitcoin approaching its current all-time high?

Michaël van de Poppe is rather pessimistic on this question because, “  Bitcoin does not like the month of September at all . Historical data indeed shows that Bitcoin is rather bearish in September and when it is not, monthly gains do not exceed 6% . Are there major reasons that would justify an exception in 2021?

Will Bitcoin's bull run resume in September 2021? Unlikely, given Bitcoin's historic performance in September.
Publication by Michaël van de Poppe – Source: Twitter

If September is not very favorable for the bulls, the fourth quarter would give them wings , especially the year following the halving. January was set to be bearish in 2021 given Bitcoin’s past performance, but that was hardly the case this year .

The daily analysis of the Bitcoin price, which among other things makes it possible to identify the major supports and resistances in the short term, should not hide the most important factor for a 6-digit Bitcoin: the increase in its rate of adoption both among small portfolios and among billionaires who fear a devaluation of fiat currencies .

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